Greggs posts 3.4% like-for-like sales growth but warns of 740 manufacturing job losses
Greggs has reported a 7.7% increase in third quarter total sales, with like-for-like sales increasing by 3.4%, as it also announced that it could cut around 740 manufacturing roles.
The food-to-go retailer said trading in the 13 weeks to 26 September was boosted by the successful launch of new products and more settled weather in August and September.
Subscribe to TRBGreggs said its menu innovations resonated with customers, with strong summer sales for its iced drinks range, including Matcha and Cherry Lemonade flavours. It said the relaunch of its salads had also driven sales growth.
The results mean that in the year-to-date, Greggs’ total sales are up 7.4%, with like-for-like sales up 2.6%.
New store openings in the third quarter included Greggs’ fifth Bitesize Greggs at the Tesco Southwark superstore and its 50th drive-thru site, opened in Sunderland.
Greggs has opened 95 new shops and closed 38, including 20 relocations, so far in the current year. This has resulted in 57 net new openings and a total of 2,796 shops trading at the end of the quarter.
The company continues to expect around 100 to 110 net new shop openings for the full year. It is also testing its Greggs Express new format installations in franchised locations, with ten open to date and a further two to follow in the remainder of 2026.
Greggs has also announced that it has carried out a review to determine the most effective locations for its future manufacturing activity. This has resulted in proposals that would relocate some of its manufacturing processes, including the closure of four sites, which could result in around 740 roles becoming redundant over two and a half years.
The company said: “We believe such changes, whilst difficult, are necessary to ensure Greggs continues to meet capacity requirements for growth in the years ahead in the most cost-efficient manner. Our immediate priority is to minimise the impact on our people where possible. We will enter into a consultation period shortly to work with trade unions and employee representatives of those affected to refine and develop these proposals.”
Greggs estimates that the annual cash saving in pre-tax operating costs from the changes is expected to be around £20 million, which would be realised across the 2028 and 2029 financial years.
The company said its two new distribution centres in Derby and Kettering will become fully operational in 2026 and 2027 respectively, and will support the next phase of business growth.
Looking ahead, Greggs said it is continuing to make progress despite challenging market conditions by evolving its product offer and making the brand even more convenient for a wider range of customers through disciplined estate expansion.
It added: “Improved trading performance in recent months and continued strong cost control now leads us to expect a modestly improved outcome for 2026.”
